U.S.-based online resale platform ThredUp has divested its European business, Remix, in a management buyout led by Florin Filote, the General Manager of Remix.
When ThredUp acquired Remix in July 2021, it believed the move would be a growth driver for its business, but under continued financial pressure the company announced in August 2024 that it was planning to exit Europe and become “a U.S.-only business again.” Now, with the divestiture, the hope is that both ThredUp and Remix will be able to “focus on their respective core markets and strengths,” according to a company statement.
The divestiture closed simultaneously with the signing of the agreement; ThredUp will retain a minority interest in the Remix business. Additionally, prior to the closing of the transaction Remix received a final cash investment of $2 million from ThredUp to help fund its operations as Remix continues its fundraising process independently.
“This is a mutually beneficial outcome for both ThredUp and Remix,” said James Reinhart, ThredUp’s Co-founder and CEO in a statement. “We are confident that Remix will thrive under Florin Filote’s leadership and the team’s expertise. This transaction will allow ThredUp to focus on our core U.S. business and continue to innovate and evolve our marketplace.”
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“We are excited to embark on this new chapter as an independent company,” added Filote in a statement. “We have a strong foundation and a talented team, and we are committed to continuing to provide our customers with a best-in-class resale experience. We believe that this transaction will enable us to accelerate our growth and expand our presence in the European market.”
Over the last year, ThredUp has made a number of shifts to its business model in an effort to balance its books, despite the complicated dynamics of full-service resale. Recent changes have included:
- Discontinuing the points-based component of its loyalty program in September;
- Testing out a peer-to-peer offering that would sit alongside its current managed marketplace;
- Testing a premium consignment service that would cost $35, instead of the standard $14.99, to ensure that every item a user sends in will be listed. With the company’s standard “Clean Out” service, only items deemed likely to resell are listed; and
- Taking proactive measures to make its operations more efficient, including the debut of new AI-powered tools that aim to help shoppers find more items more easily and continued technology advancements to streamline its backend operations.
